Mike McGlone: “Reducing Gold’s popularity plays into the hands Bitcoin”
Bloomberg analyst Mike McGlone has published a study according to which the bitcoin rate is moving towards $50,000, as investors withdraw funds from gold and invest in BTC.
In the document, McGlone recalled an increase in the inflow of funds to the Grayscale Bitcoin Trust (GBTC) and a decrease in the capitalization of the ETF for gold. In 2020, the capitalization of GBTC has grown from 1% to 10% of the $210 billion of “well-known ETFs that track gold.”
A senior analyst at Bloomberg noted:
“In a world that is becoming more and more digital, it is logical to expect a shift in investments in bitcoin and a move away from the possession of precious metals. Unless there is a major technical glitch, old-fashioned gold investors will be at risk as investing between 1% and 5% of their assets in Bitcoin becomes more and more sensible. “
McGlone stressed that bitcoin has strong support at the level of $30,000 and now the first cryptocurrency is moving towards $50,000 due to “increased institutional recognition and the opportunity to take the place of a global reserve asset.”
According to the analyst, by 2024 the volatility of bitcoin may decrease to the levels of gold volatility. And in the future it may be even lower due to the limited number of coins issued. Bitcoin now has a 260-day volatility of 50%, the same as gold in the 1980s.
Earlier McGlone said that within five years, the rate of the first cryptocurrency may well reach $100,000